PRIME MINISTER Datuk Seri Anwar Ibrahim has approved an additional RM10 million allocation for the Ministry of Transport to expand the Matching Grant Programme for the Replacement of Ageing Vehicles, following overwhelming demand from taxi drivers seeking to upgrade their vehicles.
The additional funding was announced during the launch of the National MADANI Taxi Renewal Programme at Dataran Merdeka, where the government also introduced financing facilities enabling eligible taxi drivers to acquire the Proton S70 under the initiative.
Anwar said the initial RM10 million allocated under Budget 2026 had been fully utilised within about three months, reflecting strong demand among taxi drivers to replace ageing vehicles with newer models.
“Because the response has been so encouraging, I am approving an additional RM10 million today. This is specifically for taxis,” he said.
The Prime Minister said the MADANI Taxi initiative is expected to increase taxi drivers' monthly net income to between RM5,000 and RM7,000 by reducing repair and maintenance costs, improving financing arrangements and lowering overall operating expenses.
He also reiterated the government's commitment to ensuring taxi permits are issued directly to drivers rather than large companies, allowing operators themselves to benefit from ownership.
“For many years, if you look at my speeches in Parliament, one of the issues I consistently raised was why taxi permits were being granted to wealthy individuals while drivers were expected to earn an honest living.
“Why can't the permits be issued directly to the drivers so that they become the owners? This is an issue that has been raised for decades. The government now believes that permits should be granted to those who are capable of operating the service,” he said.
Earlier, Transport Minister Anthony Loke requested an additional RM10 million allocation for the matching grant programme after informing the Prime Minister that the initial allocation had been fully subscribed within three months.
Anwar said the government is also working with Proton, financial institutions and relevant ministries to develop more affordable ownership packages by reducing financing costs, maintenance expenses and after-sales service charges, thereby easing the financial burden on taxi drivers.
He added that the government aims to improve drivers' earnings through lower operating costs, stronger financial support and greater service efficiency.
The Prime Minister also stressed the need to help taxi drivers adapt to digital technologies, including ride-booking applications, and called on the relevant ministries to bring training programmes directly to taxi stands so that drivers can participate without sacrificing their working hours.
Describing taxi drivers as among the country's frontline ambassadors, Anwar said they play an important role in shaping visitors' first impressions of Malaysia through their professionalism, service quality and hospitality, adding that the government would continue introducing measures to strengthen the welfare of the sector. - July 3, 2026
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